Journal of College Teaching & Learning January 2008

Volume 5, Number 1

Where Are the Accounting Professors?

Jui-Chin Chang, (Email: cjchang40@yahoo.com), Morgan State University
Huey-Lian Sun, (Email: hsun@jewel.morgan.edu), Morgan State University

ABSTRACT
Accounting education is facing a crisis of shortage of accounting faculty. This study discusses the
reasons behind the shortage and offers suggestions to increase the supply of accounting faculty.
Our suggestions are as followings. First, educators should begin promoting accounting academia
as one of the career choices to undergraduate and graduate students. Second, schools should
provide adequate financial support to Ph.D. students. Third, academic administers should
encourage facultys involvement in mentoring Ph.D. students. Finally, the tenure and promotion
system needs to be reevaluated to facilitate success in faculty development.

ust before Enron, WorldCom and other accounting scandals, Albrecht and Sack (2000) cast doubts on the
future of accounting education. They quoted the AICPAs supply-and-demand reports to support their
allegation that fewer and less qualified students were choosing accounting as a major. They argued that
students perceived accountants to be incompatible with the creative, rewarding and people-oriented careers that
many students envisioned for themselves. They also contributed the problem of declining enrollment to poorly
designed accounting programs that were not attractive to students and did not meet the demand of accounting
professionals. Even before the report of Albrecht and Sack (2000), many institutions and studies have devoted
resources to increase accounting enrollment in order to meet the demand of the accounting profession and to
survive.1,2 They often emphasized on attracting the best and brightest students into the accounting profession.
However, they failed to recognize that inspiring and passionate professors are the keys to attract the best and
brightest students. Unfortunately, the accounting education in recent years has encountered a serious shortage of
qualified faculty. The shortage came at a time when studies have just reported a stable increase in accounting
enrollment.3 In the near future, accounting education might face a crisis that there are not enough qualified
accounting faculty to teach the best and brightest students attracted to the programs.
Some studies have provided insight on the shortage of qualified accounting faculty from the demand and
supply of future faculty. Carpenter and Robin (2004) reported that the doctoral program output in accounting has
declined to 110 in 2002 when it compared with an average approximately 200 per year in the late 1980s through
mid-1990s. Gullapalli (2004) reported that the number of accounting faculty openings was more than twice in the
number of submitted resumes in 2002. The Association to Advance Collegiate Schools of Business (AACSB)
estimated the faculty shortage including accounting in the United States to reach 1,142 individuals by 2008, and
2,419 by 2013.4 Plumlee, Kachelmeier, Madeo, Pratt, and Drull (2006) reported similar prediction of an overall
shortage of accounting faculty.

For instance, in 1994, the Institute of Management Accountants (IMA) and the Financial Executives Institute (FEI) sought for
What Corporate America Wants in Entry-Level Accountant from the customer perspective. In 1998, the American Accounting
Association (AAA) urged each institution to define its market niche in order to build new curricula in the high priority areas. The
IMAs 1999 Counting More, Counting Less outlined the transformations in the management accounting profession.
2
Bedford Commission (1986) stated that accounting education was not meeting the needs of changing profession (Friedlan,
1995). Inman, Wenzler, and Wickert (1989) warned that the accounting majors did not attract the right type of students. The
Accounting Education Change Commission (AECC) was appointed by the American Accounting Association and supported by
the Big Eight (then) public accounting firms in 1989 when the White Paper: Perspectives on Education was published. Its
Position Statement Number One addressed the objectives of accounting.
3
Titard, Braun and Meyer (2004) and Gullapalli (2004) reported that there was contrary evidence to the previous concern about
losing accounting students due to the accounting scandals. In fact, students gained a deeper understanding of accounting matters
and its implication of the profession after the Sarbanes-Oxley Act and the economy downturn.
4
Rayburn, J. (2005). Retrieved from http://aaahq.org/AM2005/menu.htm/2005_Rayburn.ppt.

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The purpose of this study is to examine reasons for the shortage of accounting faculty from both the
demand and supply perspectives and offer suggestions to reverse the trend of shortage with emphasis on increasing
the supply of qualified accounting faculty.
SHORTAGE OF ACCOUNTING FACULTY: FROM THE DEMAND PERSPECTIVE
There are many factors which induced an increasing demand for accounting faculty. First, although critics
has criticized the 150-hour requirement that hindered the enrollment of undergraduates, it could result in an increase
in the number of accounting courses taught, and subsequently an increase in the demand for accounting faculty
(Campbell et al, 1990). Many universities now offer 5-year accounting programs for students to get both
undergraduate and master degrees in five years to meet the 150-hour requirement. Accordingly, more accounting
faculty members are needed for the additional accounting courses.
Second, the prevailing trend toward lowering teaching load may be accounted as another factor for
increasing demand for accounting faculty. Many business programs emphasizing research in their tenure and tenure
systems have reduced teaching load for faculty. For example, most teaching schools with moderate research
requirements have three-course teaching load per semester while research oriented schools have two or less per
semester for accounting faculty. The competition for new faculty makes teaching load an important determinant in
the mutual selection process between faculty candidates and schools. Therefore, in order to compete for good
candidates, some schools are willing to offer lower than normal teaching load to new faculty. As a result, schools
have to either increase class sizes or hire more faculty members to cover all courses offered.
Third, the increasing number of business programs seeking for accreditation from the AACSB also
contributes to the increasing demand for accounting faculty. To receive the AACSB accreditation, schools have to
meet standards that require programs to have a substantial faculty with terminal (doctoral) degree teaching in the
programs. In addition, the AACSB standards require faculty to have intellectual contributions (publications) to be
academically qualified. These standards force schools seeking for AACSB accreditation to hire more qualified
accounting faculty. Therefore, the demand for qualified accounting faculty has increased. According to AACSB, the
number of business schools achieving the AACSB accreditation has increased from 330 in November 2000 to 530 in
July 2006 (Sinning & Dykxhoorn, 2001; AACSB).5
Finally, the retirement of current faculty who are baby boomers deepens the plight of demand for
accounting faculty. Campbell, Hasselback, Hermanson, and Turner (1990) used the Hasselback faculty database and
used age 65 as retirement age to study whether there would be shortage of accounting faculty for a 25-year span
from 1990 to 2014. Their results showed a severe shortage trend of accounting faculty due to the reason that the
retirement rate is to be higher than the growth of replacement rate. In fact, many accounting programs now are
experiencing the pressure of losing faculty who are close to their retirement age.
SHORTAGE OF ACCOUNTING FACULTY: FROM THE SUPPLY PERSPECTIVE
Several reasons have contributed to the decline in accounting Ph.D. candidates. First, academia has not
been promoted as an accounting career choice. Carpenter and Robson (2004) claimed that a lack of interest in
academia might be the domain reason for low enrollment in accounting Ph.D. programs. According to their study,
the decline in Ph.D. program output first evident in 1995 has become a trend. Lack of interest in academia and fewer
applicants are severe factors in the decline of accounting Ph.D. candidates. Unaware of academia as an accounting
profession, negative perception of accounting academia, and upswing interests in other disciplines are other reasons
for fewer applicants in the Ph.D. programs.
Second, high opportunity costs can hinder potential candidates. On average, it takes students four to six
years beyond a masters degree to get a Ph.D. degree in accounting. The opportunity cost of current earnings and
future earnings to the candidates of pursuing a Ph.D. degree can be considerable. Most schools provide financial
aids to Ph.D. students on condition that they must be full-time students. Students thus have to give up their full-time
jobs to join the programs. However, many Ph.D. students perceived that the amount of financial aid is inadequate.6
5
6

Retrieved from its web site: http://www.aacsb.edu/General/InstLists.asp?lid=2.

Plumlee et al. (2006) found from the student survey that about one-third (one-fifth) of North American (international) students

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In addition, other highly desirable benefits such as health and life insurance are usually not available to Ph.D.
students. In order to attract more students to enter Ph.D. programs, universities and schools need to find ways to
reduce the opportunity costs imposed on students.
Third, the salary does not make the accounting academic career more attractive than the other disciplines.
For example, accounting has lost its monetary charm to the finance discipline in recent years. According to the
AACSB survey, the salaries of new hire of assistant accounting professor were $95,300 while the salaries of new
hire of assistant finance professor were $102,400 in 2003. Even though the salary gap between finance and
accounting professors narrowed down in 2005 and 2006, we probably will not see the result of increasing
accounting Ph.D. students until a few years later.
Fourth, tenure-track and research related pressure and high risk of not receiving tenure are perceived to
hinder students interest in accounting academia. Tenure represents job security, academia freedom, and a career
motivator. Although both teaching and research are important factors in the mission of schools, in reality, the
decisive factor in tenure and promotion decisions is research (Tang & Chamberlain, 2003). Many schools require
faculty to have both quality and quantity in their publications for tenure. On average, a new accounting Ph.D. has to
invest a minimum of 6 to 7 years to complete whatever work required in research, teaching and service before
he/she gets tenured (Stone, 1996). Research shows that most faculty do not receive tenure at their place of original
employment (Rittenburg, 1998). For a Ph.D. candidate, it is certain that more 10 years of life is at stake for her/him
to pursuit accounting academia as a career.
SUGGESTIONS TO INCREASE THE SUPPLY OF QUALIFIED PH.D. FACULTY
From the above discussions of shortage of accounting faculty from both the demand and supply
perspectives, we suggest that instead of curbing the increasing demand for accounting faculty, universities and
schools can take actions on increasing the supply of qualified Ph.D. faculty. We offer the following suggestions.
Promote Accounting Academia As One Of The Career Choices To Accounting Students
To increase the supply of qualified accounting faculty starts with attracting qualified candidates to
pursue Ph.D. degree in accounting. This will not solve the current shortage of accounting faculty since it will take at
least four to six years before we see an increase in supply. However, if we do not start promoting accounting
academia as a career choice now, the shortage of qualified accounting faculty will become even worse later on. In
addition to the suggestion by Plumlee et al. (2006) that AAA creates a website to provide information to attract
potential students seeking accounting Ph.D. degree, we suggest schools redesign courses offered to meet the
150-hour requirement to channel undergraduate and master students into accounting Ph.D. programs. Currently,
most schools have their curriculum designed to meet the 150-hour requirements for CPA examination, and they offer
courses that are practitioner-oriented for firms and organizations. We suggest that school include entry-level research
oriented courses in their 150-hour requirement plan to create a link between the accounting undergraduate/master
programs and the Ph.D. program.
Provide Adequate Financial Support To Ph.D. Students
Even without official statistics, our experience tells us that not all Ph.D. candidates are able to complete
their programs. When a student drops out of a program, it is not only the loss to the student but also a loss to the
university, which has put significant investment on the student. Among all of reasons for withdrawals, the common
two are financial problems and unsatisfactory academic performance. In many situations, financial problems lead to
unsatisfactory academic performance which results in withdrawals. In order to increase the supply of accounting
Ph.D. students, it is inevitable that universities have to provide adequate financial support to students. More
importantly, faculty members have to get involved in coursework and curriculum development to help Ph.D.
students succeed in the programs. The fellowships and scholarships not only can reduce the opportunity costs of
pursuing a Ph.D. degree but also can create better-trained doctoral candidates if the fellowships and scholarships
require Ph.D. students to be involved in doing research with faculty members.

see the financial support as inadequate.

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Motivate Current Faculty To Help Ph.D. Students Succeed In Program

The expense and cost of doctoral education are very expensive for both the schools and Ph.D. candidates.
To help new Ph.D. candidates succeed in the programs, faculty involvement with students is important. Traditionally,
universities place research more over teaching. Therefore, it locks up faculty to focus on doing research by
self-interest to get tenure and promotion. Since teaching doctoral courses is time-consuming and supervising a
dissertation takes extensive amount of time, faculty members may not feel that it is in their best interest to work with
Ph.D. students. The survey by Plumlee et al. (2006) reveals that almost half of the Ph.D. students feel that their
programs are too stressful. To release the students program-related stress and help them succeed in programs, we
suggest that universities provide incentives to create a mentoring atmosphere between faculty and Ph.D. students.
The incentives could include release course load, stipends and grants to faculty who are mentors to Ph.D. students.
Reevaluate The Tenure And Promotion System
Most programs have a tenure and promotion system in place for motivating faculty career development and
measuring faculty performance in teaching, research, and service. Although AACSB has favored mission-based
standards that tie publications to schools missions, many schools still have the tenure and promotion systems tied to
research more than teaching or service. Tension exists in most campuses regarding the relative importance of
teaching versus research in school missions and reward evaluations. It is time for the universities, deans and
department heads to review the tenure and promotion systems to have a balanced interaction of teaching, research
and service. Specific cultural changes and tenure and promotion policies are critical to facilitate facultys success in
academia and to accomplish the missions of university and department. In addition, we believe that a feasible tenure
and promotion system will improve the image of the accounting academia and attract more candidates to this
profession.
CONCLUSION
The continued quality of accounting education depends on the availability of qualified accounting faculty,
which in turn is the way to attract the best and the brightest students into accounting. Although the enrollments of
undergraduate and graduate students have turned into a positive sign, the quality of accounting education may be
threaten due to the result of shortage of qualified accounting faculty. The declining quality of accounting education
is evident in that many universities are coping with the shortage of faculty by hiring adjunct accounting faculty to
teach. It is time for universities to build a vision with leadership to reverse the trend of decreasing supply of
qualified accounting faculty.
Beginning with promoting accounting academia as a career choice to prospective Ph.D. students is a
starting point to reverse the unawareness and lack of interest in accounting Ph.D. programs. Schools can use the
150-hour degree programs to expose potential Ph.D. candidates to accounting Ph.D. programs by introducing
entry-level research oriented courses in the programs. Second, providing significant monetary fellowships and
scholarships not only reduces the opportunity cost but also creates better-trained doctoral candidates if the
fellowships and scholarship incorporate doctoral students research with facultys career development. Third, to help
Ph.D. students succeed in the programs, accounting faculty should be inspiring and passionate in serving as mentors
to students and working with them. Finally, implementing specific cultural changes and tenure and promotion
policies to create a supportive academic environment will help faculty career development and improve image of the
profession.
In conclusion, accounting education has recently been through the crisis of enrollment decline, and the
recent increase in enrollment does not make it totally out of the crisis yet. It is time for administrators and educators
to start thinking about how to increase the supply of qualified accounting faculty.
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